December 2023

Major Threats to Your Career:? GATEKEEPERS & JEALOUS/ENVIOUS COLLEAGUES

A significant disconnect exists between employees and mid-level management in the current corporate landscape, often designated as "Gatekeepers." Employees harbor concerns that their innovative ideas and contributions won't be supported or trusted when relayed to these gatekeepers.

The apprehension of not receiving due recognition—or worse, having their ideas dismissed—cultivates an environment where many choose silence over the risk of vulnerability. This cautious approach to idea sharing is symptomatic of a deeper issue within the organizational culture, where the flow of creativity and innovation is impeded by the very structures meant to promote it.

Compounding this issue is the internal dynamics among team members themselves. Employees ready to bring their ideas from concept to execution often find themselves unsupported by their colleagues. This lack of support can be particularly pronounced in the presence of jealousy or envy from longer-tenured staff, who may view the success or ambition of newer employees as a threat to their standing within the company.

Such dynamics can lead to a protective and secretive atmosphere, where employees feel compelled to guard their ideas rather than share them for the collective benefit. The resulting climate is one marked by competition instead of collaboration, undermining the team's potential for collective achievement and innovation.

These elements of a toxic work culture culminate in what can be described as "The Underestimated Employee" phenomenon. These are individuals who, despite their capacity to contribute meaningfully, feel marginalized due to the lack of support and recognition from both management and peers.

Such employees often withdraw, withholding their ideas and reducing their engagement, which can have a cascading effect on their performance and overall well-being. The organization misses out on potentially groundbreaking concepts and risks losing valuable talent, as underestimated employees may seek environments more receptive to their contributions and where they can truly thrive.

A notable example of a company experiencing financial damage due to having many underestimated employees is Yahoo in the early 2010s. During this period, Yahoo faced significant challenges, including a rapid turnover of CEOs, unclear strategic direction, and a culture often described as stifling innovation.

One of the core issues was the company's inability to recognize and utilize the talents of its employees effectively. Many skilled and creative employees felt undervalued and overlooked, leading to low morale and lacking engagement. This atmosphere stifled innovation, preventing Yahoo from keeping pace with rapidly evolving competitors like Google and Facebook in critical areas such as search technology, advertising, and social media.

As a result of this internal environment, Yahoo experienced a significant talent drain, with many of its capable employees leaving for companies that were seen as more innovative and appreciative of employee contributions. The cost of replacing these employees and the loss of institutional knowledge further strained the company's resources.

Financially, these issues manifested in Yahoo's declining market share and revenues. The company struggled to launch new, successful products and missed several opportunities to capitalize on emerging internet trends. This decline was reflected in its stock price and overall market valuation, culminating in its eventual sale to Verizon in 2017 for a fraction of its peak value.

Yahoo's experience underscores the financial and strategic costs that can arise from underestimating the value and potential of employees, highlighting the importance of nurturing a supportive and innovative workplace culture.

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If this newsletter hits too close to your heart, stay tuned for the January 2024 New Year newsletter! I will focus on how to use Leadership Confidence Strategies to SUCCESSFULLY overcome these two monumental barriers.

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All the Best

Wendi O. Brown

Chief Strategist

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